The Australian Federal Police has been asked to investigate possible breaches of the Commonwealth Electoral Act, following comments made on radio by independent Federal MP Tony Windsor.
The Labor Party wrote to the Australian Electoral Commission (AEC) about the matter, which in turn referred it to the police.
The ALP lodged a complaint with the AEC over claims Mr Windsor was offered inducements to stand aside in the forthcoming election.
Mr Windsor, who holds the NSW seat of New England, told radio station 2TM: "There have been occasions where I've been approached by people with political connections with various suggestions that I might like to remove myself from the parliament, and in lieu of that, receive some diplomatic postings or other sorts of arrangements."
Prime Minister John Howard challenged Mr Windsor to "name who the person was" and accused him of "smearing the Coalition".
Full story in Wednesday's Southern Highland News.